Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1887-03-12
THE DEAL NOT OFF.
The Arrangements Will be Perfect
ed-Mr. Garrett StiII Reticeuf.
IN ,--.-..-, A.. A.. Iinr.A.A-
[By telegraph to the Dispatch

ny ltleBfhpn 10 tile DiSPhtShsI
BALTIMORE, March IA private
dispatch received in this city this after
noon from New York says: 1.-The
deal is not of, and it will be consum-
mated"
The following has just been issued
from the Baltimore and Ohio railroad
Office: Mr.. CARROTS attention was
called to the newspaper reports regard
ing the proposed railway arrange
ments. He refused to talk further
upon the subject, but said whatever
arrangements were made would com
mend themselves to the community of
baltimore, and be recognized as pro-
tective, wise and valuable to all inter-
ests involved.
New YORK, March 1.-The arrange
ment for the purchase OF the control of
the Baltimore and Ohio by q private
syndicate, in which President Garrett
will have an interest, contemplates
placing the stock in collateral trust for
the new company, and issuing bonds Sc
cured by this trust to the amount of
SIO,0O0,O00. These bonds are to be
taken as part payment of the stock.
The new company will issue Sj0,0O0,-
GOO in stock, and holders OF outstanding
Baltimore and Ohio stock will receive
three shares of new stock for one share
Of old. The new stock will be listed on
the New York Stock Exchange on the
present basis Of earnings, and will re-
ceive dividendsat the rate of 6 percent
perannum. The express business, par
lor.cars. and telegraph lines will be sold
at the best opportunity, but until that
is done will be operated as heretofore.
Some difficulties in the way of the deal
are said 70 be the Staten Island con-
tracts and the attitude of the Pennsyl-
yania Railroad Company.
NEW York, March 1.-THE follow
ing statement is made 10y one of the
indicate which is about to acquire con-
troll of the Baltimore and Ohio:
President Garrett has granted an ex-
tension of time in which TO take up the
majority of the stock, and he will not
hold out on tcchnicalities either regard
ing the exact terms or time. There is
no option given to any one person, but
written agreement is in this city giving
certain party the right to buy the
stock, and this party, although not
mentioned in the contract, is clearly
understood by both Garrett and
the parties conducting the negotiations.
The price is not more than
5000 per share, but whether it
it is less or not l will not say. Mr..
Garrett will be represented in the syn
dictate, and Gould viii also be repre-
sented there. The sale of the property,
when eliminated, will bring about
settlement of the question of entering
New York city, and the telegraph and
express. lines will be sold. Sully has
the same interest as before in the syn
dictate, and all interests are working in
harmony. The negotiations referring
to the sale of the Richmond Terminal
failed on account OF the refusal Of the Ex
ccutive Committee yesterdayto consent
TO the issue Of additional stock. The ne
cessary stock Will be paid for in cash,
which will either be subscribed at once
by the syndicate or loaned by the First
National Bank, Drexel, Morgan 4 Co., or
Winslow, Lanier & Co., who will issue
negotiable certificates for it. The pro-
liability at present, however, is that the
necessary cash will I've subscribed. The
formation of a new company is not con-
templated. The securities may ulti-
mately be sold to the Richmond Ter
minal Company, but at higher price
than that paid by the syndicate"